About

Neatco Engineering Services Inc., founded in 2010 and headquartered in Waterloo, Ontario, develops advanced AI systems that combine computer vision, robotics, and machine learning to optimize industrial automation and quality control. With 19 employees, Neatco’s IntelSight, IntelSort, and IntelView platforms are used in automotive, electronics, and materials processing to enhance production efficiency, reduce waste, and support real-time inspection. The company operates the AI for the Circular Economy Lab (AICEL), a state-of-the-art facility that integrates robotics and imaging systems for rapid prototyping and validation of AI-driven manufacturing solutions. Neatco’s goal is to make advanced AI inspection systems accessible, explainable, and adaptable to Ontario manufacturers of all sizes.

Project

This project will develop a hybrid AI-agent that fuses Region-Based Convolutional Neural Networks (RCNNs) with Large Language Models (LLMs) to create an intelligent, explainable quality control system. Deployed in a robotic inspection cell, the system will detect and analyze defects while generating natural-language explanations and recommendations operators can easily understand. Partnering with ventureLAB, Neatco will leverage high-performance GPU infrastructure to train and fine-tune its models, integrating computer vision with language reasoning in a single workflow. The solution will enable frontline workers to interact with AI systems conversationally, removing barriers to adoption in small and mid-sized manufacturing operations.

Impact & Outcomes

The project will deliver a fully functional prototype AI-agent capable of real-time defect detection and contextual reporting, advancing Neatco’s technology to TRL 6. It will generate new datasets, validated AI models, and a commercial-ready inspection module deployable across multiple sectors. In the short term, Neatco projects $3 million in sales over five years and the creation of at least two new engineering positions in Ontario. Longer-term, Neatco aims to capture 3–5% of Canada’s $731M quality management systems market, generating $22–36 million in annual revenue. The project will enhance manufacturing productivity, reduce scrap, and strengthen Ontario’s global competitiveness in advanced AI-driven automation.